Shares of GameStop Corp. (GME.N) plunged 15% on Wednesday following a significant drop in quarterly revenue, raising concerns about the company’s ability to revitalize its business. At the current share price of $19.96, GameStop faces a potential $1.2 billion reduction in its market value.
The retailer, a prominent meme stock that captivated retail investors during the meme stock frenzy of early 2021, has been grappling with its transformation efforts. The company is working to streamline its operations by reducing the number of stores and shifting its focus toward selling higher-margin products. However, the recent financial results have cast doubt on the effectiveness of these strategies and the company’s path to profitability.
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